by Janani Balasundar, Research Analyst, MIPC
The calibration and repair services market in North America and Europe is anticipated to reach $3.98 billion by 2022, driven by increased quality awareness, greater adoption of metrology in the manufacturing process, and tightening regulations imposed by calibration regulatory authorities globally. The market is expected to grow rapidly with the advent of the Industrial Internet of Things (IIoT) that requires all connected equipment to be calibrated regularly in order to ensure the proper functioning of the overall network.
There is a growing demand for on-site services mainly due to their ability to reduce disruptions in a company’s operations. Instead of sending instruments for repair and calibration, and then waiting for the testers to send them back, calibration is performed on-site, reducing the waiting time and eliminating the risk of damage. Focus on automation also drives the calibration and repair services market, reducing the time required to perform calibration and improving its quality. Pricing, however, is a key concern for Tier 1 service providers, as many medium-scale participants compromise on quality to offer competitive prices.
The calibration and repair services market involves different types of service providers, parameters, geographies, and end users. Among the 20 growth opportunities in the market, there are:
- 5G Research & Development
US started the initial rollout of 5G technology in Austin and Indianapolis in 2017.
5G networks are expected to boost the US economy, creating three million jobs and contributing more than $500 billion to the country’s gross domestic product (GDP). A number of test equipment vendors have been investing in 5G research. Researchers are evaluating calibration methods for sampling oscilloscopes and vector network analyzers (VNAs) at 50 GHz and beyond. Carriers in the US are targeting a 2020 launch. 5G commercial deployment will provide opportunities for calibration service providers from 2018.
- Calibration of Hybrid Vehicles in the Automotive Industry
The global market for hybrid cars is anticipated to reach $350 billion by 2022. Hybrid vehicles will record a higher growth rate in the following years. New carbon dioxide (CO2) emission standards are driving manufacturers to develop hybrid vehicles. These vehicles have complex systems that need to be calibrated at regular intervals to maintain their efficiency. Hybrid and plug-in hybrid vehicles are the most popular hybrid cars due to their efficiency. Calibration service providers should focus on such vehicles. Moreover, they should be methodical and partially adopt test methods while calibrating these components.
- Calibration Asset Management Software
Calibration asset management software is a huge hit among customers, as it allows them to know the status and shipping details of the equipment sent for calibration. Equipment status is updated in real time. It also allows customers to electronically store their calibration certificates. Service providers should offer cloud-based asset management software. Moreover, they should add different functions such as automated notification regarding the delivery of their equipment, asset utilization reports, and equipment inventory.
- Multi-vendor Multi-instrument Capabilities
Multi-vendor instrument services are being increasingly offered by both manufacturers and service providers. Customers are looking for a single vendor to calibrate and repair instruments of various brands. Third-party service providers (TSPs) should partner with original equipment manufacturers (OEMs) or other TSPs to service brands or specific instruments that they do not specialize in. More OEMs should offer multi-vendor instrument services.
- Emerging Economies
In developing countries, awareness regarding quality is growing, and customers wish to calibrate their equipment to comply with international standards. Advanced instruments from developing countries need to be sent for calibration to Europe and the United States due to unavailability of the master equipment. Service providers should bring sophisticated equipment to developing countries to perform calibration rather than sending the instruments abroad and increasing the downtime. Service providers in emerging regions need to be trained to provide calibration services for sophisticated equipment.
In developing countries, awareness regarding quality is growing, and customers wish to calibrate their equipment to comply with international standards. Advanced instruments from developing countries need to be sent for calibration to Europe and the United States due to unavailability of the master equipment. Service providers should bring sophisticated equipment to developing countries to perform calibration rather than sending the instruments abroad and increasing the downtime. Service providers in emerging regions need to be trained to provide calibration services for sophisticated equipment.
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We have published our research service, Growth Opportunities in Calibration & Repair Services Market, Forecast to 2022 at www.frost.com.
